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South Korea’s competition regulator announced on Tuesday that it will fine Google 207.4 billion Korean won ($ 176.9 million) for allegedly using its dominant market position in the mobile operating system space to stifle competition .
Google’s Android operating system currently occupies most of the smartphone market, ahead of Apple’s iOS platform.
According to the Korean Fair Trade Commission, the US technology giant would have used its market position to prevent smartphone manufacturers like Samsung from using operating systems developed by rivals.
Yonhap News added that the regulator, which published its decision in Korean, said the technology giant required smartphone manufacturers to accept an “anti-fragmentation agreement (AFA)” when they signed key contracts with Google on application store licenses and early access to the operating network. system.
This agreement prevented device manufacturers from installing modified versions of the Android operating system, known as “Android forks,” on their phones, Yonhap reported.
The regulator alleged that Google’s practice stifled innovation in the development of new smartphone operating systems, the news site added. The KFTC has called on the tech giant to stop forcing companies to sign AFAs and has ordered it to take corrective action, according to Yonhap.
A Google spokesman argued that the Android compatibility program has driven hardware and software innovation and given success to Korean phone manufacturers and developers.
“KFTC’s decision released today ignores these benefits and will undermine consumer benefits. Google intends to appeal KFTC’s decision,” the spokesman told CNBC in a statement.
Tuesday’s fine is small compared to the tech giant’s quarterly figures. Last quarter, Google’s parent company, Alphabet, reported revenue of $ 61,888 million.
Still, Tuesday’s decision is the latest setback for South Korea’s technology company.
In late August, the country’s parliament passed a bill that would allow app developers to avoid paying significant commissions to major app store operators, including Google, by directing users to pay through alternative platforms.